Question

Burnley, Understanding Financial Accounting, Second Canadian Edition INTRO TO FINANCIAL ACCOUNTIN ctice Assignment Gradebook ORION Downloadable eTextbook nment FULL SCREEN PRINTER VERSION WileyPLUS Problem 10-1 a-b (Part Level Submission) On January 1, 2020 a company takes out a 5-year mortgage on a new property in the amount of $535,000 at an annual interest rate of 6%. There will payment payable at the end of each month that will include both interest and principal. The fixed monthly payment payable is $10,343.05. (a) Calculate the amount of interest and principal for the first month's payment. (Round answers to 2 decimal places, e.g. 15.25.) Interest $ Principal $ Attempts: 0 of 2 used SAVE FOR LATER SUB (b) The parts of this question must be completed in order. This part will be available when you complete the part above. to search gp ^ - bursa ENG DOLL

1 a

Answer 1

Amount of Loan Interest for one month Payment made Principal amount in payment e-d-c Interest Rate c (see work ing) $2,675.00 b a $5,35,000.00 $10,343.05 $7,668.05 6% Per Anntm Interest is calculated for one month Principal Rate of interest (per annum) Time adjustment 535000 6% *1month 12months = $2675 Answer Interest $2,675.00 Principal $7,668.05